Paxton Deposition Raises New Questions in Texas Senate Race

A dispute over sealed legal records has added a new development to Texas' Senate race, as a leaked deposition from Republican Ken Paxton's 2014 testimony draws attention to a federal fraud investigation and Democratic candidate James Talarico's effort to make related records public. The disclosure, reported by The New York Times and detailed by The Daily Beast on October 9, 2026, concerns Paxton's dealings with Servergy Inc., a technology startup in McKinney, Texas.

A Collin County court is considering whether to unseal deposition records connected to Paxton's former securities fraud case, according to NBC DFW's October 8 report. Talarico's attorneys argue the documents should be released, while Paxton's legal team maintains there is no legal basis for making them public.

The deposition was part of a U.S. Securities and Exchange Commission investigation into Servergy and its founder, Bill Mapp, who faced allegations of making false statements to investors. Investigators questioned Paxton about whether he had concealed compensation from the company for recruiting investors, according to The New York Times' account of the testimony.

During the 2014 deposition, Paxton repeatedly said he could not remember details of his dealings with the company. The New York Times reported that he used variations of "I don't remember" and "I don't recall" more than 200 times while answering questions under oath.

Investigators also examined emails in which Mapp appeared to offer Paxton a commission for bringing in investors. Paxton said he did not remember reading many of those messages and denied performing services for Servergy, according to the report.

Paxton's financial disclosures became another focus of questioning. His tax returns listed $100,000 in payments for "legal services" from the company, but he attributed responsibility for preparing his tax returns to his then-wife, Angela Paxton.

Asked about his tax preparation, Paxton said in the deposition:

"I haven't prepared a tax return in a long time because I don't have time, so typically, actually my wife actually does them," Paxton said.

The testimony also addressed shares in Servergy that Paxton received from Mapp after meeting him at a Dairy Queen to deliver a check for his investment. Mapp rejected the payment and instead gave Paxton 100,000 shares of stock, according to The New York Times.

Paxton described Mapp's explanation for refusing the money during his testimony:

"He said, I can't take your money. God doesn't want me to take your money," Paxton said.

When asked why Mapp would provide the shares without payment, Paxton characterized the decision as unusual and described the founder's religious outlook:

"It was not logical," Paxton said.

He added:

"Bill is a spiritual person," Paxton said.

Paxton also testified that he could not remember where the stock certificate was located and said he had not consulted a lawyer about whether accepting the shares was appropriate. Although he listed the shares in annual financial reports submitted to state ethics regulators, a Texas ethics law expert told The New York Times that the failure to disclose them as a gift may have violated state rules.

Paxton further disclosed that he had more than $400,000 invested in various companies but said he did not have time to track those investments, according to the report.

A federal judge dismissed the SEC's fraud case against Paxton in 2017, ruling that he was not obligated to tell investors that he had received something of value from Servergy. Paxton was indicted in a separate securities fraud case, denied the allegations, and saw that case dismissed after completing community service and paying $300,000 in restitution to investors, according to NBC DFW.

Paxton's campaign has faced additional scrutiny from leaked audio recordings, The Daily Beast reported. A Paxton adviser characterized the deposition disclosure as a political distraction in a response to The New York Times.

The adviser said Paxton had faced years of political opposition:

"has been politically persecuted for years for standing up to the establishment, and Texans have seen through it every time," the adviser said.

The dispute comes amid broader scrutiny of Paxton's conduct in public office and questions about his personal finances. His estranged wife, Angela Paxton, filed for divorce last year, accusing him of infidelity, according to The Daily Beast. She declined to comment to The New York Times, and the publication said it had not received a response to its own request for comment.